Bitcoins, what are they? Some time ago, a friend asked me a simple question. “What is a bitcoin?” Of course, that was the first of several questions. Such as how do they work, how do I get one, and what does it look like?
This article is a follow-up to that inquiry.
Bitcoins
Revisiting Bitcoins
Well, the last question was easy. It is not a tangible thing. It exists only as computer code, so it looks like nothing. The other questions required days of research. I will not go into all that I found but what I found was interesting. And in the end, I advised my friend against entering this type of market unless you know what you are doing.
Fast forward a few years, and cryptocurrency is gaining popularity. And I began to wonder if I was correct in my assessment. After all, there are some people making tons of money on bitcoins. But then came an article in AARP that addressed my concern. The short answer is I was correct.
Cryptocurrency, which includes Bitcoins, is still a risky deal. But don’t take my word for it. Do your due diligence and research it for yourself. In the meantime, I share with you some of what I read and heard on this subject.
AARP Article And Podcast
If you get AARP Go to page 6 of the June issue and read, Bitcoins For beginners by Kate Rockwood and The Questionable Value of Virtual Collectibles by Lexi Pandell
Or go online and listen to their podcast on Cryptocurrency.
Link to AARP Podcast Understanding Bitcoin and Other Digital Valuables
11 Reasons To Avoid Cryptocurrency
The articles and the podcast are quite interesting. In summary, I learned the following about cryptocurrency.
- Cryptocurrency is not backed by the government.
- The government does not accept cryptocurrency as any type of payment.
- You need a digital bank to store your currency.
- Lose the bank or forget the password, and your money is lost forever. There is no such thing as password retrieval.
- Cryptocurrency is not insured.
- Buy cryptocurrency with money you can afford to lose.
- Cryptocurrency fluctuates all day.
- Currency is not traceable.
- Criminals love cryptocurrency.
- Beware of the place you purchase cryptocurrency.
- Cryptocurrency comes with only one guarantee. You have used your hard-earned money to buy it.
If; you don’t believe anything else. Believe this. Do not venture into this market unless you have money you don’t mind losing.
One Last Item NFTs
Another digital fad is Digital Collectibles or Non-Fungible Tokens
Non-Fungible tokens take the place of tangible items such as photographs, music, or video clips. They are the digital version of these items, residing as computer code. And come with the same liabilities as bitcoins and other cryptocurrencies.
NFTs are the latest fad to hit the digital world and should be approached with caution. As with cryptocurrency, do your due diligence before purchasing, and use the money you can afford to lose.
One last thing, because NFTs are digital code, the only way to display what you have is with a computer or other digital device.
Comments, Questions, Suggestions?
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